<PAGE>
<PAGE>
STATEMENT OF NET ASSETS
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER--66.1%
ABS
$25,150 1/04/95................. 5.65% $25,138,158
13,410 2/17/95................. 6.19 13,301,629
AES BARBERS POINT,
INC.
20,581 2/17/95................. 6.10 20,417,095
AGA CAPITAL CORP.
25,000 1/13/95................. 5.95 24,950,417
49,000 1/12/95................. 6.05 48,909,418
ALAMO FUNDING
15,000 1/12/95................. 5.80 14,973,416
42,075 1/13/95................. 6.00 41,990,850
20,037 1/11/95................. 6.05 20,003,327
AMERICAN BANKERS
INSURANCE GROUP, INC.
22,700 2/08/95................. 6.13 22,553,238
B.I. FUNDING, INC.
33,200 1/04/95................. 6.10 33,183,123
BANCA CRT FINANCIAL
CORP.
25,000 1/10/95................. 6.07 24,962,062
BANKERS TRUST NEW
YORK CORP.
25,000 1/30/95................. 5.40 24,891,250
BARTON CAPITAL CORP.
35,000 1/12/95................. 5.77 34,938,293
30,000 3/28/95................. 6.30 29,548,500
BETA FINANCE CORP.,
LTD.
10,000 1/17/95................. 5.40 9,976,000
BRIDGE OIL INTERNATIONAL
FINANCE, LTD.
8,600 1/12/95................. 5.47 8,585,626
BTR DUNLOP FINANCE,
INC.
20,000 2/27/95................. 6.22 19,803,033
CHIAO TUNG BANK
CO., LTD.
20,000 2/23/95................. 5.13 19,849,097
10,000 4/19/95................. 6.00 9,820,000
CLIPPER RECEIVABLES
CORP.
44,215 1/19/95................. 6.07 44,080,807
COPLEY FINANCING CORP.
17,456 1/27/95................. 6.10 17,379,097
CS FIRST BOSTON
GROUP, INC.
$ 9,000 2/06/95................. 5.43% 8,951,130
CXC, INC.
42,400 2/13/95................. 6.15 42,088,537
DIAMOND ASSET
FUNDING CORP.
20,387 1/31/95................. 6.13 20,282,942
30,847 3/27/95................. 6.35 30,384,509
EQUIPMENT FUNDING,
INC.
52,849 2/07/95................. 6.13 52,516,308
ESC SECURITIZATION
50,000 2/09/95................. 6.10 49,669,583
FALCON ASSET
SECURITIZATION CORP.
12,000 1/11/95................. 6.05 11,979,833
FPL FUELS, INC.
11,578 1/17/95................. 5.85 11,547,897
GOLDEN MANAGERS
ACCEPTANCE CORP.
40,000 1/11/95................. 6.05 39,932,778
GOVERNMENT DEVELOPMENT
BANK FOR PUERTO RICO
75,000 1/17/95................. 6.01 74,799,667
GREENWICH ASSET
FUNDING, INC.
25,000 1/19/95................. 6.04 24,924,500
HAHN ISSUING CORP.
15,200 2/17/95................. 6.15 15,077,957
HEALTH INSURANCE PLAN
OF GREATER NEW YORK
10,130 1/19/95................. 5.52 10,102,041
IMI FUNDING CORP.
(USA)
7,659 5/01/95................. 6.00 7,505,820
14,000 3/13/95................. 6.30 13,826,050
INDUSTRIAL FUNDING CORP.
24,900 2/13/95................. 6.20 24,715,602
JV RECEIVABLES CORP.
11,079 1/23/95................. 5.90 11,039,054
20,000 1/17/95................. 6.07 19,946,044
KAMEHAMEHA SCHOOLS
27,900 1/23/95................. 6.00 27,797,700
MERRILL LYNCH & CO.
INC.
20,000 1/18/95................. 5.40 19,949,000
</TABLE>
1
<PAGE>
STATEMENT OF NET ASSETS(continued) ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
MORGAN STANLEY GROUP,
INC.
$18,000 1/18/95................. 5.40% $ 17,954,100
14,000 4/13/95................. 6.45 13,744,150
MULTIBANCO COMERMEX
25,000 4/21/95................. 6.45 24,507,292
NICOLLET FUNDING CORP.
12,622 1/03/95................. 5.55 12,618,108
NORDBANKEN NORTH
AMERICA, INC.
35,000 1/13/95................. 5.42 34,936,767
ODC CAPITAL CORP.
22,150 1/19/95................. 6.10 22,082,443
OMNIBUS FUNDING CORP.
10,000 2/10/95................. 6.20 9,931,111
PACIFIC DUNLOP
HOLDINGS, INC.
11,000 3/31/95................. 5.57 10,848,527
PACIFIC DUNLOP, LTD.
13,000 1/11/95................. 5.05 12,981,764
PHILIP MORRIS CAPITAL
72,500 1/04/95................. 5.75 72,465,260
PREMIUM FUNDING CORP.
(SERIES B)
16,057 2/07/95................. 6.15 15,955,506
PRIME ASSET VEHICLE,
LTD.
25,000 1/17/95................. 5.75 24,936,111
RIVERSIDE FUNDING, INC.
22,638 1/12/95................. 6.13 22,595,598
RIVERWOODS FUNDING
CORP.
20,000 2/03/95................. 6.10 19,888,167
SEIKO CORP. OF AMERICA
9,000 1/20/95................. 5.10 8,975,775
SEVENTY FIVE STATE
STREET
CAPITAL CORP.
21,818 1/13/95................. 6.10 21,773,637
SIERRA FUNDING CORP.
9,064 5/15/95................. 6.13 8,857,185
STRATEGIC ASSET FUNDING
CORP.
46,027 2/28/95................. 6.10 45,574,657
30,000 3/31/95................. 6.15 29,543,875
SUMITOMO CORP. OF
AMERICA
15,000 3/13/95................. 6.20 14,816,583
UBFC, INC.
$14,000 1/24/95................. 6.10% $ 13,945,439
UNITED AIRLINES FIRST
FUNDING CORP.
18,500 1/23/95................. 5.45 18,438,385
WORKING CAPITAL
MANAGEMENT CO. L.P.
30,426 2/14/95................. 5.90 30,206,595
--------------
Total Commercial Paper
(amortized cost
$1,533,868,423)......... 1,533,868,423
--------------
BANK OBLIGATIONS--17.6%
AMERICAN EXPRESS CENTURION
BANK
20,000 5.85%, 2/17/95 FRN...... 5.85 20,000,000
10,000 5.89%, 4/18/95 FRN...... 5.89 10,000,000
BANK OF HAWAII
10,000 3.55%, 1/20/95.......... 3.70 9,999,279
10,000 3.55%, 1/20/95.......... 3.70 9,999,530
BANK ONE CHICAGO N.A.
10,000 5.40%, 7/27/95.......... 5.82 9,976,309
BANK ONE MILWAUKEE
10,000 5.82%, 3/22/95 FRN...... 5.82 10,000,000
BANK ONE TEXAS N.A.
10,000 3.50%, 1/26/95.......... 3.65 9,998,963
10,000 5.82%, 3/21/95 FRN...... 5.82 10,000,000
BANKERS TRUST NEW
YORK CORP.
10,000 5.25%, 1/16/95.......... 3.80 10,005,658
10,000 5.64%, 3/17/95 FRN*..... 5.69 9,998,973
15,000 5.67%, 6/20/95 FRN*..... 5.74 14,995,109
10,000 6.25%, 1/03/95 FRN...... 6.25 10,000,000
BAYERISCHE LANDESBANK
5,500 5.75%, 2/14/95.......... 3.65 5,513,388
BENEFICIAL CORP.
5,000 8.91%, 1/11/95.......... 6.10 5,003,318
BOATMENS FIRST NATIONAL
BANK OF KANSAS CITY
16,000 5.64%, 8/18/95 FRN...... 5.70 15,994,516
COMERICA BANK DETROIT
MICHIGAN
15,000 5.85%, 9/29/95 FRN...... 5.92 14,992,449
10,000 5.86%, 11/08/95 FRN..... 5.98 9,989,576
19,000 5.83%, 11/22/95 FRN..... 5.98 18,974,605
</TABLE>
2
<PAGE>
ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
DRESDNER BANK AG
$10,000 5.30%, 4/25/95.......... 5.30% $ 10,000,000
FCC NATIONAL BANK
10,000 3.59%, 2/01/95.......... 3.70 9,999,087
FIRST NATIONAL BANK
MARYLAND
12,500 5.80%, 1/09/95 FRN...... 5.81 12,499,672
NATIONSBANK NORTH
CAROLINA
10,000 5.40%, 5/19/95.......... 5.40 9,999,764
10,000 5.75%, 7/21/95.......... 5.77 9,995,807
PNC BANK DELAWARE
10,000 3.55%, 1/20/95.......... 3.70 9,998,945
PNC BANK OHIO
10,000 5.82%, 6/15/95 FRN...... 5.89 9,996,922
PNC BANK PITTSBURGH
15,000 5.82%, 4/21/95 FRN...... 5.97 14,992,552
13,771 5.28%, 2/14/95.......... 5.45 13,768,121
10,000 5.70%, 4/20/95.......... 6.15 9,985,889
REPUBLIC NATIONAL BANK,
NEW YORK
10,000 4.30%, 3/08/95.......... 4.50 9,996,460
10,000 4.30%, 3/08/95.......... 4.55 9,995,582
SOCIETE GENERALE N.A.,
INC. CD
10,000 5.18%, 1/23/95.......... 5.20 9,999,854
SOCIETY BANK N.A.
10,000 3.55%, 1/20/95.......... 3.70 9,999,157
U.S. BANCORP
7,000 8.40%, 5/31/95.......... 5.45 7,081,965
WACHOVIA BANK N.A.
10,000 3.88%, 1/17/95.......... 3.66 10,000,880
WESTDEUTSCHE LANDESBANK
10,000 3.70%, 2/10/95.......... 4.50 9,992,096
10,000 3.70%, 2/10/95.......... 4.50 9,990,309
5,000 3.70%, 1/11/95.......... 3.60 5,000,102
10,000 3.70%, 1/11/95.......... 5.00 9,996,306
------------
Total Bank Obligations
(amortized cost
$408,731,143)........... 408,731,143
------------
CORPORATE OBLIGATIONS--11.2%
ABBEY NATIONAL
10,000 5.85%, 4/27/95 FRN*..... 5.88 9,999,205
AMERICAN EXPRESS CO.
$ 5,000 11.95%, 1/15/95......... 3.85% $ 5,015,026
ASSET SECURITIZATION
COOPERATIVE CORP.
20,000 5.85%, 4/11/95 FRN...... 5.85 20,000,000
ASSOCIATES CORP. OF
NORTH AMERICA
8,000 6.38%, 4/15/95.......... 4.65 8,036,958
AUSTRALIAN WHEAT BOARD
5,000 3.99%, 2/23/95.......... 4.38 4,996,658
BEAR STEARNS COS., INC.
15,000 6.25%, 1/27/95 FRN...... 6.05 15,002,118
10,000 6.34%, 10/20/95 FRN..... 6.34 10,000,000
11,000 5.97%, 4/26/95 FRN...... 5.97 10,999,601
10,000 6.24%, 8/17/95 FRN...... 6.24 10,000,000
BETA FINANCE CORP., LTD.
10,000 5.85%, 3/08/95 FRN*..... 5.85 10,000,000
10,000 5.40%, 6/30/95*......... 5.41 10,000,000
CS FIRST BOSTON, INC.
10,000 6.26%, 6/16/95 FRN*..... 6.26 10,000,000
10,000 5.81%, 5/25/95.......... 5.81 10,000,000
DOME CORP. (PUTABLE
ADJUSTABLE DEMAND BONDS)
8,800 6.25%, 8/31/16 FRN...... 6.25 8,800,000
EKSPORTFINANS
8,000 4.38%, 2/17/95.......... 4.60 7,997,163
GENERAL ELECTRIC CAPITAL
CORP.
10,000 5.85%, 2/15/95.......... 3.65 10,026,238
10,000 3.55%, 1/19/95.......... 3.60 9,999,679
GOLDMAN SACHS GROUP
10,000 5.00%, 4/20/95*......... 5.30 9,991,130
7,000 5.91%, 4/07/95 FRN...... 5.92 6,999,624
20,000 6.48%, 11/02/95 FRN*.... 6.48 20,000,000
INTERNATIONAL LEASE
FINANCE CORP.
10,000 6.00%, 1/15/95.......... 4.50 10,005,176
5,000 5.60%, 5/11/95.......... 5.61 5,000,000
MERRILL LYNCH & CO.
10,000 5.69%, 2/08/95 FRN...... 5.69 10,000,000
10,000 5.87%, 6/20/95 FRN...... 5.87 10,000,000
10,000 6.75%, 3/15/95.......... 4.30 10,034,545
8,000 6.75%, 3/15/95.......... 4.30 8,037,829
------------
Total Corporate Obligations
(amortized cost
$260,940,950)........... 260,940,950
------------
</TABLE>
3
<PAGE>
STATEMENT OF NET ASSETS (Continued) ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS--3.2%
AGENCY FOR INTERNATIONAL
DEVELOPMENT
$12,500 6.42%, 12/01/16 FRN..... 6.42% $ 12,500,000
FEDERAL HOME LOAN
MORTGAGE CORP.
54,000 2/02/95................. 5.85 53,719,200
OVERSEAS PRIVATE
INVESTMENT CORP.
3,125 6.42%, 6/10/97 FRN...... 6.42 3,125,000
STUDENT LOAN MARKETING
ASSOCIATION
5,000 6.30%, 4/24/95 FRN...... 5.84 5,006,630
--------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(amortized cost
$74,350,830)............ 74,350,830
--------------
MUNICIPAL OBLIGATIONS--1.7%
IDAHO HOUSING
AGENCY TCP
5,000 1/18/95................. 5.45 4,987,132
NEW ENGLAND POWER CO.
28,000 5.55%, 1/10/95.......... 5.55% 28,000,000
UTAH HOUSING FINANCE
AGENCY TCP
6,000 1/05/95................. 5.60 5,996,267
--------------
Total Municipal
Obligations (amortized
cost $38,983,399)....... 38,983,399
--------------
TOTAL INVESTMENTS--99.8%
(amortized cost
$2,316,874,745)......... 2,316,874,745
Other assets less
liabilities--0.2%....... 5,392,055
--------------
NET ASSETS--100%
(offering and redemption
price of $1.00 per share;
2,322,916,853 shares
outstanding)............ $2,322,266,800
==============
- - --------------------------------------------------------------------------------
</TABLE>
+ All securities either mature or their interest rate changes in one year or
less.
* Restricted security-See Note F.
GLOSSARY OF TERMS:
CD Certificate of Deposit
FRN Floating Rate Note
TCP Taxable Commercial Paper
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED) ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest........................................... $59,175,062
EXPENSES
Advisory fee (Note B).............................. $ 5,923,835
Distribution assistance and administrative service. 3,358,699
Transfer agency.................................... 2,755,400
Custodian fees..................................... 239,200
Registration fees.................................. 150,080
Printing........................................... 90,295
Audit and legal fees............................... 46,600
Trustees' fees..................................... 16,560
Miscellaneous...................................... 24,080
-----------
Total expenses..................................... 12,604,749
Less: expense reimbursement........................ (439,175) 12,165,574
----------- -----------
Net investment income.............................. 47,009,488
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments................... (514,119)
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS.......... $46,495,369
===========
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- - -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31, 1994 YEAR ENDED
(UNAUDITED) JUNE 30, 1994
----------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income............................ $ 47,009,488 $ 58,817,899
Net realized loss on investments................. (514,119) (49,939)
-------------- --------------
Net increase in net assets from operations....... 46,495,369 58,767,960
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income............................ (47,009,488) (58,817,899)
TRANSACTIONS IN SHARES OF BENEFICIAL INTERESTS
Net increase (decrease).......................... (94,480,182) 305,442,434
-------------- --------------
Total increase (decrease)........................ (94,994,301) 305,392,495
NET ASSETS
Beginning of period.............................. 2,417,261,101 2,111,868,606
-------------- --------------
End of period.................................... $2,322,266,800 $2,417,261,101
============== ==============
</TABLE>
- - -------------------------------------------------------------------------------
See notes to financial statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Capital Reserves (the "Trust") is an open-end diversified investment
company registered under the Investment Company Act of 1940. The Trust consists
of two portfolios: Alliance Capital Reserves (the "Portfolio") and Alliance
Money Reserves. Each portfolio is considered to be a separate entity for
financial reporting and tax purposes. The following is a summary of significant
accounting policies followed by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method
a portfolio instrument is valued at cost and any premium or discount is
amortized on a constant basis to maturity.
2. TAXES
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its investment company taxable income and net realized gains, if
applicable, to its shareholders. Therefore, no provisions for federal income
or excise taxes are required.
3. DIVIDENDS
The Portfolio declares dividends daily and automatically reinvests such
dividends in additional shares at net asset value. Net realized capital gains
on investments, if any, are expected to be distributed near year end.
4. GENERAL
Interest income is accrued as earned. Security transactions are recorded on a
trade date basis. Realized gain (loss) from security transactions is recorded
on the identified cost basis. It is the Portfolio's policy to take possession
of securities as collateral under repurchase agreements and to determine on a
daily basis that the value of such securities are sufficient to cover the
value of the repurchase agreements.
- - --------------------------------------------------------------------------------
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average
daily net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next
$.25 billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1
billion; and .45 of 1% in excess of $3 billion. The Adviser has agreed to
reimburse the Portfolio to the extent that its annual aggregate expenses
(excluding taxes, brokerage, interest and, where permitted, extraordinary
expenses) exceed 1% of its average daily net assets for any fiscal year. For
the six months ended December 31, 1994, the reimbursement amounted to
$439,175. The Portfolio compensates Alliance Fund Services, Inc. (a
wholly-owned subsidiary of the Adviser) for providing personnel and
facilities to perform transfer agency services for the Portfolio. Such
compensation amounted to $1,563,556 for the six months ended December 31,
1994.
- - --------------------------------------------------------------------------------
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays the Adviser a distribution fee at an
annual rate of up to .25 of 1% of the average daily value of the Portfolio's
net assets.
The Plan provides that the Adviser will use amounts payable under the Plan in
their entirety for (i) payments to broker-dealers and other financial
intermediaries, including the Portfolio's distributor, for distribution
assistance and payments to banks and other depository institutions for
administrative and accounting services and (ii) otherwise promoting the sale
of shares of the Portfolio. For the six months ended December 31, 1994, the
distribution fee amounted to $3,041,394. In addition, the Portfolio
reimbursed certain broker-dealers for administrative costs incurred in
connection with providing shareholder services, accounting, bookkeeping,
legal and compliance support. For the six months ended December 31, 1994,
such payments by the Portfolio amounted to $317,305 of which $72,000 was paid
to the Adviser.
6
<PAGE>
ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1994, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1994 the
Portfolio had a capital loss carryforward of $135,934 of which $85,995 expires
in 2001 and $49,939 expires in 2002.
- - --------------------------------------------------------------------------------
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December
31, 1994, capital paid-in aggregated $2,322,916,853. Transactions, all at
$1.00 per share, were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31, 1994 YEAR ENDED
(UNAUDITED) JUNE 30, 1994
----------------- --------------
<S> <C> <C>
Shares sold..................................... 5,158,363,847 9,686,454,531
Shares issued on reinvestments of dividends..... 46,213,833 57,999,637
Shares redeemed................................. (5,299,057,862) (9,439,011,734)
----------------- --------------
Net increase (decrease)......................... (94,480,182) 305,442,434
================= ==============
</TABLE>
- - --------------------------------------------------------------------------------
NOTE F: RESTRICTED SECURITIES
<TABLE>
<CAPTION>
DATE % OF NET
SECURITY ACQUIRED VALUE ASSETS
- - -------- -------- ----------- --------
<S> <C> <C> <C>
Abbey National 5.85%, 4/27/95 FRN....................... 4/27/94 $ 9,999,205 .43%
Bankers Trust New York Corp. 5.64%, 3/17/95 FRN......... 3/17/94 9,998,973 .43
Bankers Trust New York Corp. 5.67%, 6/20/95 FRN......... 12/07/94 14,995,109 .65
Beta Finance Corp., Ltd. 5.85%, 3/08/95 FRN............. 3/23/94 10,000,000 .43
Beta Finance Corp., Ltd. 5.40%, 6/30/95................. 6/15/94 10,000,000 .43
CS First Boston, Inc. 6.26%, 6/16/95 FRN................ 6/16/94 10,000,000 .43
Goldman Sachs Group 5.00%, 4/20/95...................... 5/06/94 9,991,130 .43
Goldman Sachs Group 6.48%, 11/02/95 FRN................. 11/02/94 20,000,000 .86
----------- ----
$94,984,417 4.09%
=========== ====
</TABLE>
The securities listed above are restricted as to resale except among qualified
institutional investors such as the Portfolio.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS(continued) ALLIANCE CARPIAL RESERVES
- - --------------------------------------------------------------------------------
NOTE G: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1994 ----------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
- - ---------------------------------
Net investment income .0194 .0255 .0266 .0438 .0662 .0782
Net realized gain on
investments -0- -0- .0003 .0013 -0- -0-
------- ------- ------- ------- ------- -------
Net increase in net assets
from operations .0194 .0255 .0269 .0451 .0662 .0782
------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
- - -------------------
Dividends from net investment
income (.0194) (.0255) (.0266) (.0438) (.0662) (.0782)
Distributions from net realized
gains -0- -0- (.0003) (.0013) -0- -0-
------- ------- ------- ------- ------- -------
Total dividends and
distributions (.0194) (.0255) (.0269) (.0451) (.0662) (.0782)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURNS
- - -------------
Total investment return based on:
net asset value (a) 3.88%(b) 2.58% 2.73% 4.61% 6.84% 8.14%
RATIOS/SUPPLEMENTAL DATA
- - ------------------------
Net assets, end of period (in
millions) $ 2,322 $ 2,417 $ 2,112 $ 1,947 $ 1,937 $ 1,891
Ratio of expenses to average
net assets 1.00%(b)(c) 1.00%(d) 1.00% 1.00% .97% .88%
Ratio of net investment income
to average net assets 3.86%(b)(c) 2.57%(d) 2.65% 4.37% 6.62% 7.82%
</TABLE>
- - --------------------------------------------------------------------------------
(a) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(b) Annualized.
(c) If the fund had borne all expenses, the expense ratio would have been 1.04%.
The net investment income ratio would have been 3.82%.
(d) If the fund had borne all expenses, the expense ratio would have been 1.03%.
The net investment income ratio would have been 2.54%.
8
<PAGE>
ALLIANCE CAPITAL RESERVES
- - --------------------------------------------------------------------------------
TRUSTEES
DAVE H. WILLIAMS, Chairman
JOHN D. CARIFA
SAM Y. CROSS
CHARLES H.P. DUELL
WILLIAM H. FOULK, JR.
ELIZABETH J. MCCORMACK
DAVID K. STORRS
SHELBY WHITE
JOHN WINTHROP
OFFICERS
RONALD M. WHITEHILL, President
JOHN R. BONCZEK, Executive Vice President
ROBERT I. KURZWEIL, Senior Vice President
WAYNE D. LYSKI, Senior Vice President
PATRICIA NETTER, Senior Vice President
RONALD R. VALEGGIA, Senior Vice President
DREW BIEGEL, Vice President
DORIS T. CILIBERTI, Vice President
PAMELA F. RICHARDSON, Vice President
EDMUND P. BERGAN, JR., Secretary
MARK D. GERSTEN, Treasurer & Chief Financial Officer
PATRICK J. FARRELL, Controller
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
9
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Bulk Rate
U.S. Postage Paid
New York, NY
Permit No. 7131
Alliance Capital Reserves
1345 Avenue of the Americas, New York, NY 10105
Toll free 1-(800) 221-5672
Yields. For current recorded yield information on Alliance Capital Reserves,
call on a touch-tone telephone toll-free (800) 251-0539 and press the
following sequence of keys:
[1] [#] [1] [#] [3] [9] [#]
For non-touch-tone telephones, call toll-free (800) 221-9513
- - ------------------------------------------------------------
[LOGO OF ALLIANCE CAPITAL APPEARS HERE]
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further information
about the Fund.
(R) These registered service marks used under license from the owner,
Alliance Capital Management L.P.
ALC501296
CAPSR
Alliance
Capital
Reserves
[LOGO OF ALLIANCE CAPITAL APPEARS HERE]
Semi-Annual Report
December 31, 1994
(Unaudited)
<PAGE>
<PAGE>
STATEMENT OF NET ASSETS
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMERCIAL PAPER--64.1%
ABS COMMERCIAL
PAPER, INC.
$ 12,640 1/17/95............................ 5.83% $ 12,607,248
AGA CAPITAL, INC.
24,000 1/04/95............................ 5.60 23,988,800
20,000 1/13/95............................ 5.95 19,960,333
ALAMO FUNDING
10,000 1/12/95............................ 5.80 9,982,278
25,000 1/20/95............................ 6.10 24,919,514
ALLOMON FUNDING
CORP.
10,000 1/23/95............................ 6.12 9,962,600
AMERICAN HOME
PRODUCTS CORP.
20,000 1/04/95............................ 5.90 19,990,167
ASI FUNDING
11,221 2/01/95............................ 5.60 11,166,890
BANCA CRT FINANCIAL
CORP.
10,000 1/17/95............................ 5.47 9,975,689
25,000 1/05/95............................ 6.05 24,983,194
35,000 1/06/95............................ 6.07 34,970,493
BANKERS TRUST NEW
YORK CORP.
10,000 1/30/95............................ 5.40 9,956,500
BARTON CAPITAL CORP.
35,766 1/12/95............................ 5.77 35,702,943
BERKELY FUNDING, INC.
25,000 1/10/95............................ 6.07 24,962,062
BETA FINANCE INC.
9,800 2/27/95............................ 6.20 9,703,797
CHIAO TUNG BANK
13,900 2/23/95............................ 5.13 13,795,123
10,000 4/19/95............................ 6.00 9,820,000
20,000 3/20/95............................ 6.18 19,732,200
CITY OF SAN DIEGO,
CA TCP
14,915 5.68%, 1/09/95..................... 5.68 14,915,000
COMPAGNIE BANCAIRE
USA FINANCE
10,000 1/17/95............................ 5.40 9,976,000
6,650 4/24/95............................ 6.00 6,524,758
CROSBY HEAD FUNDING
CORP.
21,242 1/11/95............................ 6.04 21,206,361
CS FIRST BOSTON
GROUP, INC.
9,000 2/06/95............................ 5.43 8,951,130
CXC, INC.
40,000 2/13/95............................ 6.15 39,706,167
DIAMOND ASSET
FUNDING CORP.
35,000 1/25/95............................ 6.05 34,858,833
DYNAMIC FUNDING CORP.
20,000 2/16/95............................ 6.20 19,841,556
EMBARCADERO CENTER
ASSOCIATES
21,250 1/06/95............................ 6.10 21,231,997
EQUIPMENT INTERMEDIATE
PARTNERSHIP
25,709 1/05/95............................ 6.05 25,691,718
20,458 1/09/95............................ 6.07 20,430,404
GOVERNMENT DEVELOPMENT
BANK FOR PUERTO RICO
71,150 1/10/95............................ 6.00 71,043,275
HEALTH INSURANCE PLAN
OF GREATER NEW YORK
10,000 1/19/95............................ 5.52 9,972,400
IDAHO HOUSING AGENCY
TCP
5,000 1/11/95............................ 5.55 4,992,292
5,000 1/09/95............................ 5.68 4,993,694
IMI FUNDING CORP.
(USA)
13,730 5/19/95............................ 6.00 13,414,210
10,715 3/13/95............................ 6.30 10,581,866
JV RECEIVABLES CORP.
10,000 1/23/95............................ 5.90 9,963,944
17,602 2/22/95............................ 6.19 17,444,619
MERRILL LYNCH & CO.
20,000 1/18/95............................ 5.40 19,949,000
MORGAN STANLEY
GROUP, INC.
18,000 1/18/95............................ 5.40 17,954,100
14,000 4/13/95............................ 6.45 13,744,150
NICHIMEN AMERICA,
INC.
20,000 1/20/95............................ 6.10 19,935,611
NORDBANKEN NORTH
AMERICA, INC.
10,000 1/13/95............................ 5.42 9,981,933
</TABLE>
1
<PAGE>
STATEMENT OF NET ASSETS (continued) ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
OCTOBER CORP.
$ 13,375 3/22/95............................ 6.25% $ 13,189,236
OMNIBUS FUNDING
15,996 1/20/95............................ 6.10 15,944,502
PACIFIC DUNLOP
HOLDINGS, INC.
11,000 3/31/95............................ 5.57 10,848,527
6,000 4/12/95............................ 5.60 5,905,733
PAR CAPITAL CORP.
18,008 1/19/95............................ 6.10 17,953,076
PHILLIP MORRIS
30,000 1/04/95............................ 5.75 29,985,625
PREMIUM FUNDING
SERIES A
11,713 2/21/95............................ 6.05 11,612,610
PRIME ASSET VEHICLE,
LTD.
25,000 1/17/95............................ 5.75 24,936,111
SAPPHIRE FUNDING
CORP.
20,000 2/13/95............................ 6.15 19,853,083
SEIKO CORP. OF AMERICA
6,000 1/20/95............................ 5.10 5,983,850
SFC (USA), INC.
20,000 3/31/95............................ 6.35 19,686,028
SIERRA FUNDING CORP.
23,457 2/02/95............................ 6.15 23,328,768
SOCIETY OF NEW YORK
HOSPITAL FUND, INC.,
NY TCP
36,420 1/10/95............................ 5.55 36,369,467
SPIEGEL FUNDING CORP.
19,900 1/04/95............................ 5.50 19,890,879
20,000 1/09/95............................ 5.65 19,974,889
SUMITOMO CORP. OF
AMERICA
15,000 3/13/95............................ 6.20 14,816,583
SVENSKA HANDELSBANKEN
30,000 3/28/95............................ 6.30 29,548,500
UNITED AIRLINES FIRST
FUNDING CORP.
7,500 2/21/95............................ 5.50 7,441,562
WMC FINANCE, LTD.
20,000 1/09/95............................ 5.65 19,974,889
WORKING CAPITAL
MANAGEMENT
CO. L.P.
29,966 2/28/95............................ 5.90 29,681,157
YOUNKERS FUNDING CORP.
9,927 1/09/95............................ 6.03 9,913,698
Total Commercial Paper -------------
(amortized cost
$1,160,323,622).................... 1,160,323,622
-------------
BANK OBLIGATIONS--19.3%
AMERICAN EXPRESS
CENTURION BANK
17,000 5.85%, 2/17/95..................... 5.85 17,000,000
10,000 5.89%, 4/18/95 FRN................. 5.89 10,000,000
BANK OF HAWAII
20,000 3.55%, 1/20/95..................... 3.70 19,998,809
BANK ONE CHICAGO
N.A.
10,000 5.40%, 7/27/95..................... 5.82 9,976,309
BANK ONE MILWAUKEE
10,000 5.82%, 3/22/95 FRN................. 5.82 10,000,000
BANK ONE TEXAS N.A.
10,000 3.50%, 1/26/95..................... 3.65 9,998,963
10,000 5.82%, 3/21/95 FRN................. 5.82 10,000,000
BANKERS TRUST
NEW YORK CORP.
10,000 5.25%, 1/16/95..................... 3.80 10,005,658
10,000 5.64%, 3/17/95 FRN*................ 5.69 9,998,973
10,000 6.25%, 1/03/95 FRN................. 6.25 10,000,000
BOATMENS FIRST NATIONAL
BANK OF KANSAS CITY
16,000 5.64%, 8/18/95 FRN................. 5.70 15,994,516
COMERICA BANK DETROIT
MICHIGAN
19,000 5.83%, 11/22/95 FRN................ 5.93 18,974,605
COMERICA BANK ILLINOIS
15,000 5.85%, 9/29/95 FRN................. 5.92 14,992,449
DRESDNER BANK AG
10,000 5.30%, 4/25/95..................... 5.30 10,000,000
FCC NATIONAL BANK
10,000 3.59%, 2/01/95..................... 3.70 9,999,087
FIRST NATIONAL BANK
MARYLAND
12,500 5.80%, 1/09/95 FRN................. 5.81 12,499,672
</TABLE>
2
<PAGE>
ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
NATIONSBANK NORTH
CAROLINA
$ 10,000 5.40%, 5/19/95..................... 5.40% $ 9,999,764
10,000 5.75%, 7/21/95..................... 5.77 9,995,807
PNC BANK DELAWARE
10,000 3.55%, 1/20/95..................... 3.70 9,998,945
PNC BANK PITTSBURGH
13,000 5.28%, 2/14/95..................... 5.45 12,997,282
12,000 5.82%, 4/21/95 FRN................. 5.97 11,994,042
10,000 5.70%, 4/20/95..................... 6.15 9,985,889
PNC BANK OHIO
10,000 5.82%, 6/15/95 FRN................. 5.89 9,996,922
REPUBLIC NATIONAL BANK,
NEW YORK
10,000 4.30%, 3/08/95..................... 4.50 9,997,396
SOCIETE GENERALE N.A.,
INC.
10,000 5.18%, 1/23/95..................... 5.20 9,999,854
SOCIETY BANK N.A.
10,000 3.55%, 1/20/95..................... 3.70 9,999,157
WACHOVIA BANK N.A.
BANK
10,000 3.88%, 1/17/95..................... 3.66 10,000,881
WESTDEUTSCHE
LANDESBANK
20,000 3.70%, 2/10/95..................... 4.50 19,982,405
15,000 3.70%, 1/11/95..................... 5.00 14,996,408
-------------
Total Bank Obligations
(amortized cost
$349,383,793)...................... 349,383,793
-------------
CORPORATE OBLIGATIONS--16.3%
ABBEY NATIONAL
10,000 5.85%, 4/27/95 FRN*................ 5.88 9,999,205
AMERICAN EXPRESS CO.
5,000 11.95%, 1/15/95.................... 3.85 5,015,026
ASSET SECURITIZATION
COOPERATIVE CORP.
16,000 5.85%, 4/11/95 FRN................. 5.85 16,000,000
ASSOCIATES CORP. OF
NORTH AMERICA
5,000 6.38%, 4/15/95..................... 4.65 5,023,099
BEAR STEARNS COS., INC.
11,000 5.97%, 4/26/95 FRN................. 5.97% 10,999,601
10,000 6.25%, 1/27/95 FRN................. 6.05 10,001,412
15,000 6.29%, 7/14/95 FRN................. 6.29 15,000,000
10,000 6.34%, 10/20/95 FRN................ 6.34 10,000,000
BETA FINANCE CORP.,
LTD.
10,000 5.40%, 6/30/95*.................... 5.41 10,000,000
10,000 5.85%, 3/08/95 FRN*................ 5.85 10,000,000
10,000 6.47%, 11/08/95 FRN*............... 6.47 10,000,000
COMMERCIAL CREDIT
5,000 8.38%, 4/15/95..................... 5.34 5,040,748
CS FIRST BOSTON, INC.
10,000 5.81%, 5/25/95..................... 5.81 10,000,000
10,000 6.26%, 6/16/95 FRN*................ 6.26 10,000,000
DOME CORP. (PUTABLE
ADJUSTABLE DEMAND
BONDS)
4,800 6.25%, 8/31/16 FRN................. 6.25 4,800,000
EKSPORTFINANS
7,000 4.38%, 2/17/95..................... 4.60 6,997,517
FORD MOTOR CREDIT CORP.
5,500 6.50%, 1/17/95..................... 4.95 5,503,479
GENERAL ELECTRIC
CAPITAL CORP.
10,000 3.55%, 1/19/95..................... 3.60 9,999,679
GOLDMAN SACHS
GROUP LP
7,000 5.91%, 4/07/95 FRN................. 5.92 6,999,624
20,000 6.48%, 11/02/95 FRN*............... 6.48 20,000,000
HOUSEHOLD FINANCE
AUSTRALIA
5,000 6.87%, 5/15/95*.................... 5.61 5,022,304
HOUSEHOLD INTERNATIONAL,
INC.
2,400 7.35%, 4/01/95..................... 5.38 2,410,820
INTERNATIONAL LEASE
FINANCE CORP.
19,425 6.00%, 1/15/95..................... 4.50 19,438,978
7,000 8.20%, 4/15/95..................... 5.35 7,053,669
LEHMAN BROTHERS
HOLDINGS, PLC
20,000 6.28%, 3/07/95 FRN................. 6.28 20,000,000
MERRILL LYNCH & CO.
8,775 6.75%, 3/15/95..................... 4.30 8,805,313
10,000 5.69%, 2/08/95 FRN................. 5.69 10,000,000
10,000 5.87%, 6/20/95 FRN................. 5.87 10,000,000
</TABLE>
3
<PAGE>
STATEMENT OF NET ASSETS (continued) ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- - --------------------------------------------------------------------------------
<C> <S> <C> <C>
SALOMON, INC.
$ 20,000 5.89%, 4/24/95 FRN................. 5.89% $ 20,000,000
Total Corporate Obligations -------------
(amortized cost
$294,110,474)...................... 294,110,474
-------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS--0.3%
STUDENT LOAN MARKETING
ASSOCIATION
5,000 6.30%, 4/24/95 FRN
(amortized cost
$5,006,630)........................ 5.84 5,006,630
-------------
TOTAL INVESTMENTS--100.0%
(amortized cost
$1,808,824,519).................... 1,808,824,519
Other assets less
liabilities--0.0%.................. 311,325
-------------
NET ASSETS--100%
(offering and redemption
price of $1.00 per share;
1,810,526,879 shares
outstanding)....................... $1,809,135,844
==============
</TABLE>
- - --------------------------------------------------------------------------------
+ All securities either mature or their interest rate changes in one year or
less.
* Restricted security--See Note F.
GLOSSARY OF TERMS:
CD Certificate of Deposit
FRN Floating Rate Note
TCP Taxable Commercial Paper
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED) ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Interest................................................. $45,134,346
EXPENSES
Advisory fee (Note B).................................... $ 4,594,531
Distribution assistance and administrative service....... 3,175,556
Transfer agency.......................................... 1,703,250
Registration fees........................................ 208,600
Custodian fees........................................... 150,350
Printing................................................. 103,640
Audit and legal fees..................................... 70,675
Trustees' fees........................................... 16,560
Miscellaneous............................................ 20,250
-----------
Total expenses........................................... 10,043,412
Less: expense reimbursement and fee waiver............... (750,472) 9,292,940
----------- -----------
Net investment income.................................... 35,841,406
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments......................... (459,285)
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS.................. $35,382,121
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31, 1994 YEAR ENDED
(UNAUDITED) JUNE 30, 1994
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................. $ 35,841,406 $ 45,487,973
Net realized loss on investments...................... (459,285) (64,655)
-------------- --------------
Net increase in net assets from operations............ 35,382,121 45,423,318
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................. (35,841,406) (45,487,973)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase.......................................... 13,607,550 170,535,622
-------------- --------------
Total increase........................................ 13,148,265 170,470,967
NET ASSETS
Beginning of period................................... 1,795,987,579 1,625,516,612
-------------- --------------
End of period......................................... $1,809,135,844 $1,795,987,579
============== ==============
</TABLE>
- - --------------------------------------------------------------------------------
See notes to financial statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Capital Reserves (the "Trust") is an open-end diversified investment
company registered under the Investment Company Act of 1940. The Trust consists
of two portfolios: Alliance Capital Reserves and Alliance Money Reserves (the
"Portfolio"). Each portfolio is considered to be a separate entity for financial
reporting and tax purposes. The following is a summary of significant accounting
policies followed by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the over-the-
counter market and are valued at amortized cost, under which method a portfolio
instrument is valued at cost and any premium or discount is amortized on a
constant basis to maturity.
2. ORGANIZATION EXPENSES
The organization expenses of the Portfolio are being amortized against income
on a straight-line basis through February 1994.
3. TAXES
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its investment company taxable income and net realized gains, if
applicable, to its shareholders. Therefore, no provisions for federal income
or excise taxes are required.
4. DIVIDENDS
The Portfolio declares dividends daily and automatically reinvests such
dividends in additional shares at net asset value. Net realized capital gains
on investments, if any, are expected to be distributed near year end.
5. GENERAL
Interest income is accrued as earned. Security transactions are recorded on a
trade date basis. Realized gain (loss) from security transactions is recorded
on the identified cost basis.
- - --------------------------------------------------------------------------------
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average
daily net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next
$.25 billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1
billion; and .45 of 1% in excess of $3 billion. The Adviser has agreed to
reimburse the Portfolio to the extent that its aggregate expenses (excluding
taxes, brokerage, interest and, where permitted, extraordinary expenses)
exceed 1% of its average daily net assets for any fiscal year. For the six
months ended December 31, 1994, the reimbursement amounted to $378,754. The
Portfolio compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary
of the Adviser) for providing personnel and facilities to perform transfer
agency services for the Portfolio. Such compensation amounted to $744,880 for
the six months ended December 31, 1994.
- - --------------------------------------------------------------------------------
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this plan, the Portfolio pays the Adviser a distribution fee at the
annual rate of up to .25 of 1% of the average daily value of the Portfolio's
net assets. The Plan provides that the Adviser will use amounts payable under
the Plan in their entirety for (i) payments to broker-dealers and other
financial intermediaries, including the Portfolio's distributor, for
distribution assistance and payments to banks and other depository
institutions for administrative and accounting services and (ii) otherwise
promoting the sale of shares of the Portfolio. For the six months ended
December 31, 1994 the Portfolio made payments of $2,323,235 of which $371,718
was waived. In addition, the Portfolio reimbursed certain broker-dealers for
administrative costs incurred in connection with providing shareholder
services, accounting and bookkeeping, and legal and compliance support. For
the six months ended December 31, 1994 such payments by the Portfolio
amounted to $852,321 of which $67,000 was paid to the Adviser.
6
<PAGE>
ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1994, the cost of portfolio securities for federal income tax
purposes was the same as the cost for financial reporting purposes. At June
30, 1994, the Portfolio had a capital loss carryforward of $931,750 of which
$794,283 expires in 1999, $72,812 expires in 2001 and $64,655 expires in
2002.
- - --------------------------------------------------------------------------------
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December
31, 1994, capital paid-in aggregated $1,808,716,353. Transactions, all at
$1.00 per share, were as follows:
<TABLE>
SIX MONTHS ENDED
DECEMBER 31, 1994 YEAR ENDED
(UNAUDITED) JUNE 30, 1994
<S> <C> <C>
Shares sold............................................ 3,383,127,493 7,454,664,537
Shares issued on reinvestments of dividends............ 35,366,835 45,508,231
Shares redeemed........................................ (3,404,886,778) (7,329,637,146)
-------------- --------------
Net increase........................................... 13,607,550 170,535,622
============== ==============
</TABLE>
- - --------------------------------------------------------------------------------
NOTE F: RESTRICTED SECURITIES
<TABLE>
<CAPTION>
DATE % OF NET
SECURITY ACQUIRED VALUE ASSETS
- - -------- -------- ------------ --------
<S> <C> <C> <C>
Abbey National 5.85%, 4/27/95 FRN................... 4/27/94 $ 9,999,205 .55%
Bankers Trust New York Corp. 5.64%, 3/17/95 FRN..... 3/17/94 9,998,973 .55
Beta Finance Corp., Ltd. 5.85%, 3/08/95 FRN......... 3/23/94 10,000,000 .55
Beta Finance Corp., Ltd. 6.47%, 11/08/95 FRN........ 11/08/94 10,000,000 .55
Beta Finance Corp., Ltd. 5.40%, 6/30/95............. 6/15/94 10,000,000 .55
CS First Boston, Inc. 6.26%, 6/16/95 FRN............ 6/16/94 10,000,000 .55
Goldman Sachs Group LP 6.48%, 11/02/95 FRN.......... 11/02/94 20,000,000 1.11
Household Finance Australia 6.87%, 5/15/95.......... 5/03/94 5,022,304 .28
----------- ----
$85,020,482 4.69%
=========== ====
</TABLE>
The securities listed above are restricted as to resale except among qualified
institutional investors such as the Portfolio.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
NOTE G: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1994 --------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
----------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS
- - ---------------------------------
Net investment income.......... .019 .025 .027 .044 .066 .079
----- ----- ----- ----- ----- -----
LESS: DISTRIBUTIONS
- - -------------------
Dividends from net investment
income....................... (.019) (.025) (.027) (.044) (.066) (.079)
----- ----- ----- ----- ----- -----
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
TOTAL RETURNS
- - -------------
Total investment return based on:
net asset value (a).......... 3.87%(b) 2.57% 2.71% 4.47% 6.87% 8.26%
RATIOS/SUPPLEMENTAL DATA
- - ------------------------
Net assets, end of period
(in millions)................ $1,809 $1,795 $1,626 $1,412 $1,262 $993
Ratio of expenses to average
net assets................... 1.00%(b)(c) 1.00%(d) 1.00% 1.00% .97% .89%
Ratio of net investment income
to average net assets........ 3.85%(b)(c) 2.55%(d) 2.67% 4.33% 6.56% 7.92%
</TABLE>
- - --------------------------------------------------------------------------------
(a) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(b) Annualized.
(c) If the fund had borne all expenses, the expense ratio would have been 1.08%.
The net investment income ratio would have been 3.77%.
(d) If the fund had borne all expenses, the expense ratio would have been 1.09%.
The net investment income ratio would have been 2.46%.
8
<PAGE>
ALLIANCE MONEY RESERVES
- - --------------------------------------------------------------------------------
TRUSTEES
DAVE H. WILLIAMS, Chairman
JOHN D. CARIFA
SAM Y. CROSS
CHARLES H.P. DUELL
WILLIAM H. FOULK, JR.
ELIZABETH J. MCCORMACK
DAVID K. STORRS
SHELBY WHITE
JOHN WINTHROP
OFFICERS
RONALD M. WHITEHILL, President
JOHN R. BONCZEK, Senior Vice President
ROBERT I. KURZWEIL, Senior Vice President
WAYNE D. LYSKI, Senior Vice President
PATRICIA NETTER, Senior Vice President
RONALD R. VALEGGIA, Senior Vice President
DREW BIEGEL, Vice President
PAMELA F. RICHARDSON, Vice President
DORIS T. CILIBERTI, Vice President
EDMUND P. BERGAN, JR., Secretary
MARK D. GERSTEN, Treasurer & Chief Financial Officer
PATRICK J. FARRELL, Controller
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
9
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
ALLIANCE
MONEY
RESERVES
AllianceCapital [LOGO APPEARS HERE]
SEMI-ANNUAL REPORT
DECEMBER 31, 1994
(UNAUDITED)
- - -----------------
Bulk Rate
U.S. Postage Paid
New York, NY
Permit No. 7131
- - -----------------
Alliance Money Reserves
1345 Avenue of the Americas, New York, NY 10105
Toll free 1-(800) 221-5672
YIELDS. For current recorded yield information on Alliance
Money Reserves, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
[1] [#] [1] [#] [3] [6] [#]
For non-touch-tone telephones, call toll-free (800) 221-9513
- - ------------------------------------------------------------
AllianceCapital [LOGO APPEARS HERE]
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further
information about the Fund.
(R) These registered service marks used under license from the owner,
Alliance Capital Management L.P.
ALC501295
MONSR
